Q3 Reports Offer Insight into Innovative Drugs Going Global: Overseas Licensing Revenue Realized, Industry Chain Prosperity Resonates Upward

As of 18:00 on October 26, 129 companies in the A-share pharmaceutical and biotech sector had disclosed their third-quarter reports, and 15 companies had issued preliminary earnings forecasts for the first three quarters, with more than 40% of enterprises achieving year-on-year profit growth. A review of the third-quarter scorecards shows that innovative drugs going overseas are moving from the earlier signing stage into a period of earnings realization. Several pharmaceutical companies' previously implemented overseas rights licensing deals have seen payments booked in concentrated fashion, becoming an important incremental driver of profits. Demand for innovative R&D at home and abroad remains robust and is transmitting upward along the industry chain, driving CDMO leaders to have full order books and accelerated earnings. Alongside earnings realization, the model of domestic pharmaceutical companies' overseas cooperation is also continuing to iterate and upgrade, and the release of the global value of innovative assets has entered a new stage.